🚲 GST 2025 & Two-Wheeler Price Changes: What Every Buyer Should Know
What changed: GST Reform for Two-Wheelers
- From 22 September 2025, the GST Council revised GST rates for two-wheelers in India. changes:
- Motorcycles / scooters / bikes up to 350 cc (petrol / ICE) → GST reduced from 28% to 18%.
- Motorcycles above 350 cc → GST increased to 40%. (This includes the earlier 28% + cess etc. being replaced by the new higher rate)
- Electric two-wheelers are generally at a lower GST slab (5%) or unaffected by this change.
Which Models Get Cheaper / Costlier?
Here are specific model examples and estimates so you see exact before & after changes (or expected changes) for popular bikes/scooters. Note: “Old Price” = ex-showroom before GST change; “New Price” = after passing on full benefit (for ≤350cc) or reflecting the higher tax (for >350cc). Prices are approximate and from major cities; your dealer / variant may vary.
| Segment | Model | Old Ex-Showroom Price* | New Price Estimate* | Price Change | Comment |
|---|---|---|---|---|---|
| Scooters / Commuter Bikes ≤ 350cc | Honda Activa | ~ ₹91,565 | ~ ₹82,000 | – ~₹9,000 | Good saving on high-volume scooter. |
| Honda Activa 125 | ~₹96,270 | ~₹86,000 | – ~₹9,000 | Same category. | |
| Hero Splendor Plus | ~₹80,216 | ~₹72,000 | – ~₹8,000 | Lower cost commuter. | |
| Hero HF Deluxe | ~₹65,808 | ~₹59,000 | – ~₹6,000 | Small saving but matters for tight budgets. | |
| TVS Raider 125 | ~₹87,375 | ~₹78,000 | – ~₹9,000 | For sporty mid-segment. | |
| Yamaha R15 V4 | ~₹1,89,780 | ~₹1,70,000 | – ~₹18,000 | Bigger saving as original is costlier. | |
| Premium / >350cc Bikes | Royal Enfield Scram 440 | — | — | Some models get more expensive (because now taxed at 40%) | E.g. for >350cc now higher tax, so price goes up instead of down. |
| Royal Enfield Himalayan (450cc) | ~₹2,85,000-₹2,98,000 | ~₹3,04,580-₹3,18,473 | + ~₹19,000-₹20,500 | Significant rise. | |
| KTM 390 Duke (over 350cc) | ~₹2,97,443 | ~₹3,17,920 | + ~₹20,500 | Same story. | |
| Bajaj Pulsar NS400Z | ~₹1,92,328 | ~₹2,05,457 | + ~₹13,129 | Higher cc bikes now cost more. |
All prices are ex-showroom (Delhi / large metro) & approximate; actual may vary with variant, color, city, dealer margin.
Full Model-Wise List: Popular Two-Wheelers (≤ 350cc) Being Cheaper
Here is a broader list of common models that are expected / reported to get cheaper (ex-showroom) due to the GST rate reduction (28→18%). These savings correspond roughly to the tax change (i.e. ~10% of base price, less any removal of cess etc.).
| Model | Old Price | Estimated New Price | Approx Saving |
|---|---|---|---|
| Hero Splendor Plus | ~₹80,216 | ~₹72,000 | ~₹8,000 |
| Hero HF Deluxe | ~₹65,808 | ~₹59,000 | ~₹6,000 |
| Hero Xtreme 125R | ~₹99,126 | ~₹89,000 | ~₹9,000 |
| Bajaj Platina 100 | ~₹70,611 | ~₹63,000 | ~₹7,000 |
| Bajaj Pulsar 125 | ~₹85,178 | ~₹76,000 | ~₹9,000 |
| Bajaj Pulsar 150 | ~₹1,13,738 | ~₹1,02,000 | ~₹11,000 |
| TVS Jupiter 110 | ~₹81,211 | ~₹73,000 | ~₹8,000 |
| TVS Jupiter 125 | ~₹89,291 | ~₹80,000 | ~₹9,000 |
| TVS Sport | ~₹59,950 | ~₹53,000 | ~₹5,000 |
| TVS Raider 125 | ~₹87,375 | ~₹78,000 | ~₹9,000 |
| Honda Shine 100 | ~₹68,862 | ~₹61,000 | ~₹6,000 |
| Honda Shine 125 | ~₹90,341 | ~₹81,000 | ~₹9,000 |
| Honda Unicorn | ~₹1,20,727 | ~₹1,08,000 | ~₹12,000 |
| Suzuki Access 125 | ~₹91,000 | ~₹81,000 | ~₹9,000 |
Models Getting More Expensive (Due to > 350cc Tax Increase)
Because bikes above 350 cc are now taxed at 40%, many premium / performance bikes are seeing price increases. Some examples:
- Royal Enfield Himalayan 450cc: ~ + ₹19,000 to ₹20,500.
- KTM 390 Duke: ~ + ₹20,500.
- Bajaj Pulsar NS400Z: ~ + ₹13,100.
Why This Matters for You
- If you are looking at commuter / scooter / ≤ 350cc bikes → this is an excellent time. Price drops are material, especially for scooters or entry-level bikes (₹5,000-₹12,000 saved in many cases).
- If you are targeting mid-segment or performance / adventure bikes > 350cc, the price increase could offset feature upgrades, so plan carefully.
- Dealers / states: ex-showroom vs on-road prices may differ (road tax, state GST components, registration, insurance) so final savings may be less.
- Variants matter: base vs high-end versions may have different taxes / components, so not all get same savings.
FAQ
Q1: When exactly will the new prices apply?
A1: From 22 September 2025 the new GST rates are effective as per government notification. Sellers are to update ex-showroom list and offer customers the revised (lower or higher) tax-inclusive cost.
Q2: Does this apply to electric two-wheelers?
A2: Not really in this change. Electric two-wheelers are already taxed lower (around 5%) in many cases, so the change in ICE engine GST affects petrol bikes mostly.
Q3: What about >350cc bikes & performance machines?
A3: Yes, for those the tax has increased — from ~28% (plus cess) to 40%. So many bikes in 400-650cc, adventure / premium performance segments will cost more.
Q4: Is the “full benefit” guaranteed?
A4: Most major manufacturers (TVS, Hero, Honda, etc.) have announced that they will pass on full benefit for ≤ 350cc bikes. But final pricing depends on variants, location etc.
Tips for Buyers
- Make your decision before variant/platform upgrades: Model launches or variant upgrades around GST change may slightly alter pricing.
- Check ex-showroom vs on-road: Road tax, registration, insurance, state components may still add extra cost.
- Check local dealer quotes: They’ll reflect your city’s fees.
- Consider riding cost: Savings from GST are one-time; mileage, servicing etc. still matter long term.
- Used market: With prices of newer ≤ 350cc bikes dropping, used bikes’ resale values may shift — good opportunity, but inspect well.
Possible Downsides / Catch-Areas
- Supreme upgrade segment hurts: Those wanting > 350cc bikes see a price rise — the “premium” feel comes at more cost.
- Stock / variant premiums: Dealers may charge extra for scarce colors or variants which may dilute the benefit.
- Delays in implementation: Some dealers may take time to update their pricing; some stock sold with old pricing; confusion in billing.
- On-road cost still includes other taxes: So you may not see full benefit in your final out-of-pocket cost.
Summary: What Should You Do Now?
- If you were considering buying a scooter / commuter bike / ≤ 350cc motorcycle, it’s a good time: you’ll pay less post-GST, so you gain in affordability.
- If you want a premium / performance / > 350cc bike, either try to buy before 22 Sep (might get old tax), or factor in the higher price and negotiate features.
- Always compare ex-showroom new pricing after GST change with what dealers quote you, variant by variant.